Crypto World
ETHZilla Shifts Strategy With Tokenized Jet Engine Offering
Crypto treasury company ETHZilla has launched a token offering access to equity in jet engines that the company acquired last month as part of its pivot into tokenized assets.
ETHZilla said on Thursday that the token, called Eurus Aero Token I, was being launched through its new subsidiary, ETHZilla Aerospace, and is backed by two commercial jet engines that are leased to “a leading US air carrier.”
The company has priced each token at $100, with a minimum purchase of 10 tokens. ETHZilla said it’s targeting an 11% return rate based on holding it for the full term of the engine leases that extend into 2028.
ETHZilla was formerly a clinical-stage biotech company called 180 Life Sciences Corp that pivoted to buying and holding Ether (ETH) in July amid a frenzy of new crypto treasury companies at the time.
ETHZilla chairman and CEO McAndrew Rudisill said the project “expands investment access and modernizes fractional asset ownership in markets that have historically been available only to institutional credit and private equity.”
“Offering a token backed by engines leased to one of the largest and most profitable US airlines serves as a strong use case in applying blockchain infrastructure to aviation assets with contracted cash flows and global investment demand,” he added.
ETHZilla shifting away from crypto treasury
Rudisill said in December ETHZilla is moving away from just buying and holding ETH and aims to build a business that brings assets on-chain through tokenization.
Crypto treasury companies experienced significant growth and hype last year, but enthusiasm has since started to cool across the market.
ETHZilla purchased the two jet engines for a combined $12.2 million in January, after selling off some of its ETH stash last year.
As part of its ongoing tokenization push, ETHZilla is also planning to launch tokens for additional asset classes, including home and car loans, according to the company’s announcement.
Some crypto execs have predicted tokenized RWAs will grow significantly in 2026, fueled by adoption in emerging economies facing issues with capital formation and attracting foreign investment.
Over $24 billion in RWA is estimated to be on-chain as of Friday, across more than 846,808 holders, according to RWA.xyz.
Ether stash down from previous high
In a Securities and Exchange Commission filing in September, ETHZilla disclosed it held 102,246 Ether at an average acquisition price of roughly $3,948, which was valued at $443 million at the time.
Related: ‘Horse has left the barn:’ ETHZilla bets big on Ethereum’s stablecoin play
Ether has fallen in step with the rest of the crypto market and has been drifting between $1,872 and $2,130 in the last seven days, according to CoinGecko.
Strategic Ether reserves lists ETHZilla as holding more than 93,000 in Ether, worth over $188 million. However, CoinGecko estimates the company’s stash is closer to 69,802, and is worth about $136 million.
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Bittensor (TAO crypto) is currently priced on an annual subsidy of $52 million, not organic revenue.
The decentralized AI protocol incentivizes its subnet to emit 518 TAO daily to top performers like Chutes, masking a near-term liquidity crisis.
With a $1.37 billion subnet market cap and near-zero organic validator yield, the network faces a structural “Income Desert.”
The TAO halving effectively starts a timer on this valuation model. While the TAO price has recovered from its Q1 2026 lows to trade above $330, the disconnect between token incentives and actual utility is widening. If external revenue does not replace inflationary rewards before the miners bleed out, the math stops working.
- Emission Dependency: Top subnets like Chutes receive $52 million in annualized subsidies while generating negligible external revenue.
- Cost Inversion: Unsubsidized decentralized compute costs are roughly 1.6-3.5x higher than centralized competitors like Deepseek.
- Valuation Gap: The network supports a $1.37 billion subnet market cap despite the bulk of validator yield coming from inflation rather than customers.
Tao Crypto Data Deep Dive: The Emission Problem
Subnets are currently paid to exist, not to serve. Chutes (SN64), a top-performing subnet, captures approximately 14.4% of total network emissions. That equals roughly 518 TAO per day. At current market prices, this serves as a $52 million annual operational subsidy shared among miners and validators.
Without this subsidy, the economics invert immediately. Pine Analytics data indicates that unsubsidized inference on Chutes would cost 1.6x to 3.5x as much as centralized competitors like Deepseek or TogetherAI.
The protocol acts as a heavy subsidizer of compute, creating a cost advantage that is artificial rather than structural. When the emissions stop covering the spread, the user value proposition evaporates. This mirrors the structural inefficiencies seen in legacy market infrastructure, where capital gets trapped in systems that do not generate velocity.
The Halving Catalyst: Why the Clock is Ticking
The TAO halving in December 2025 slashed daily emissions from 7,200 to 3,600 TAO. The buffer is gone. Miners previously relying on fat block rewards now fight for a shrinking pie, making the “Income Desert” a solvency issue rather than just a theoretical concern.
This scarcity mechanism is designed to support the price, but it stress-tests the business model. If organic revenue does not scale to replace the lost 3,600 TAO per day, miners operate at a loss. Much like the sustainability challenges that forced Balancer Labs to restructure, Bittensor’s subnets cannot run indefinitely on a deficit. The halving exposes which subnets are businesses and which are zombie chains feeding on inflation.
The Valuation Gap: What the $1.37B Subnet Market Cap Actually Reflects
The market currently values Bittensor’s subnets at roughly $1.37 billion. This figure implies a massive growth multiple based on future Crypto AI adoption, as current organic cash flows are near zero. The discrepancy is stark.
Investors are paying a premium for infrastructure that is currently less efficient than centralized alternatives. In a Proof-of-Work style system like Bittensor, the valuation must eventually be backed by miner revenue.
If the price of TAO drops or the cost-to-serve remains high, the security budget collapses. The current price of $332 assumes a seamless transition from subsidized growth to organic profitability. The data does not yet support that assumption.
The post Bittensor Income Desert: Why $52M in Subsidies Mask a TAO Crypto Valuation Risk appeared first on Cryptonews.
Cipher Digital (CIFR) shares jumped 9% in pre-market trading after the company, formerly a bitcoin miner, announced a new long-term data center lease and said it secured a $200 million revolving credit facility.
The company revealed a 15-year lease agreement with an investment-grade hyperscale tenant for its third data center campus. Cipher will develop and deliver a high-performance computing facility at an existing site, strengthening its position as a partner to large technology firms building AI infrastructure.
Cipher also announced a revolving credit facility of up to $200 million, with an additional $50 million accordion option. Backed by a syndicate of leading global banks, the facility provides non-dilutive capital to support expansion, boost liquidity, and fund future growth initiatives.
Cipher Digital, formerly known as Cipher Mining, has rebranded to reflect a strategic pivot away from bitcoin production toward the development of industrial-scale data centers for AI and cloud workloads. The move aligns the company with the rapidly growing demand for high-performance computing capacity.
Key Takeaways
- Shares of Circle Internet Group (CRCL) plunged approximately 20% on Tuesday following reports of draft legislation that would prohibit yield payments on stablecoin holdings
- Coinbase (COIN), which partners with Circle on USDC distribution, declined 9.1% amid the same regulatory concerns
- The draft provision within the Clarity Act aims to restrict yield payments offered “directly or indirectly” on stablecoins that function like interest-bearing deposits
- Company insider Nikhil Chandhok offloaded 10,000 shares on March 23 at $123.08 per share, totaling $1.23 million, just before the stock tumbled
- Circle’s fourth-quarter financial performance exceeded expectations with earnings per share of $0.43 versus the anticipated $0.25, while revenues surged 76.9% compared to the previous year
Shares of Circle Internet Group (CRCL) experienced a dramatic decline on Tuesday following revelations that proposed legislative language in the Clarity Act could eliminate the ability for platforms to provide yield on stablecoin deposits. The stock tumbled roughly 20% during trading, with Wednesday’s opening price settling at $101.90.
According to correspondence from the Blockchain Association distributed to its membership and subsequently examined by Barron’s, the proposed provision would prevent platforms from compensating investors—whether through direct or indirect means—simply for maintaining stablecoin balances in arrangements that mirror traditional interest-bearing bank accounts.
Circle serves as the creator of USDC, which ranks as the second-most widely circulated stablecoin globally. Income generated from USDC reserve assets, predominantly invested in U.S. Treasury securities and reverse repo agreements, is distributed between Circle and its distribution ally, Coinbase.
[[LINK_START_2]]Coinbase (COIN)[[LINK_END_2]] experienced a 9.1% decline on the identical trading day. The exchange presently provides users with a 3.5% annual percentage yield on USDC balances—an offering that would face elimination under the contemplated regulatory framework.
The negotiated provision, developed with contributions from White House officials and Senators Angela Alsobrooks (D-MD) and Thom Tillis (R-NC), underwent review by banking institutions and cryptocurrency companies throughout Monday and Tuesday. While activity-driven rewards and customer loyalty initiatives would remain permissible under the draft text, the Blockchain Association indicated it was pursuing additional clarification regarding acceptable programs.
The legislation has been under development for multiple years. Its primary objective involves establishing regulatory clarity for digital assets within the United States and providing exemptions from securities regulations for most cryptocurrency transactions. The stablecoin yield controversy has emerged as among several contentious elements.
Traditional banking industry representatives have consistently opposed stablecoin yield offerings, contending that such products divert customer deposits from conventional financial institutions, which generally provide lower interest rates.
Coinbase Leadership Previously Withdrew Endorsement
Brian Armstrong, CEO of Coinbase, had previously retracted his backing for the Clarity Act when an earlier iteration of the yield prohibition came to light. The current compromise represents an effort to bridge the divide between banking sector advocacy and cryptocurrency industry interests.
Beyond the yield question, the legislation confronts additional obstacles. Democratic lawmakers have advocated for provisions preventing President Trump and his relatives from generating profits through cryptocurrency holdings. Republican members have predominantly resisted such additions. These negotiations remain suspended pending resolution of the yield controversy.
The legislative calendar presents another challenge. Congressional members express concern that the measure may not secure passage through both legislative chambers before midterm election campaigns intensify.
Executive Stock Transaction and Market Analyst Perspectives
The stock decline occurred mere days following an insider transaction. Nikhil Chandhok disposed of 10,000 CRCL shares on March 23 at an average price of $123.08, generating proceeds of $1.23 million. This marked his second divestiture in recent months—he had previously sold 20,000 shares in late February at $90.00 per share.
Notwithstanding the market turbulence, Circle’s recent financial metrics demonstrated strength. The organization disclosed fourth-quarter earnings per share of $0.43, substantially exceeding the consensus forecast of $0.25, accompanied by revenue of $770.23 million—representing a 76.9% year-over-year increase.
Wall Street analyst projections vary considerably. Wells Fargo reduced its price objective from $128 to $111 while maintaining an “overweight” recommendation. Robert W. Baird maintains an “outperform” rating with a $138 price target. MarketBeat’s aggregated consensus reflects a “Hold” rating with an average target price of $126.29.
CRCL has traded within a 52-week range spanning from $49.90 to $298.99.
Crypto World
STS Digital unveils structured crypto platform, brings in Kraken as distribution partner
STS Digital, a trading firm specializing in crypto options, unveiled a structured-products platform aimed at sophisticated investors as digital assets gain growing acceptance among traditional financial institutions.
One month after raising $30 million, the Bermuda-based company said the platform, which covers 400 tokens, is aimed at banks, family offices, and high-net-worth individuals seeking returns on top of their spot-market holdings. Kraken, the crypto exchange whose parent, Payward, took part in the fundraising, will offer the platform to its partners, STS Digital said in a statement shared with CoinDesk.
Crypto structured products are seeing rising demand as venture funds, portfolio managers and large mandate holders look for more tailored hedging solutions. Standard leveraged products like futures and perpetuals, with their one-size-fits-all design, often fall short, especially due to path dependency.
Structured products typically embed options that help navigate volatility and generate additional income on top of spot market holdings. Open interest is currently around $47 billion, according to TheTie, with the lion’s share on Deribit.
For Kraken, the partnership is also about deepening its bench of products. According to the release, the exchange is leveraging STS’ derivatives expertise to power its Dual Investment product, introduced earlier this month, to allow eligible clients to earn fixed returns on bitcoin and ether (ETH).
The agreement brings “structured strategies like covered calls to our platform, strengthens our growing suite of derivatives solutions and gives clients a new way to generate return that’s distinct from traditional crypto approaches like staking or lending,” Alexia Theodorou, director of derivatives at Kraken, said in the statement.
The Reserve Bank of Australia said tokenization could bring AU$24 billion in yearly efficiency gains to the national economy.
Summary
- RBA said tokenization could add AU$24 billion yearly and is now moving toward practical rollout.
- Project Acacia tested bonds, repos, funds, and four settlement options across Australia’s wholesale finance markets.
- Stablecoins may suit smaller markets while deposit tokens could support larger regulated activity across Australia.
Meanwhile, the central bank used findings from Project Acacia to show that tokenized assets and tokenized money are moving closer to practical use in wholesale finance. It said the next stage will focus on implementation, industry coordination, and market testing.
Reserve Bank of Australia Assistant Governor Brad Jones said the central bank now sees tokenization as a question of “how” rather than “if.” He made the remarks while presenting findings from Project Acacia, which reviewed how tokenized assets and money could work in Australia’s wholesale financial system.
Jones said research from the Digital Finance Cooperative Research Centre estimated that tokenization could deliver AU$24 billion in annual efficiency gains. He also said the benefits could grow further if the technology supports the creation of new markets and services.
Project Acacia reviewed 20 use cases tied to tokenized assets, including government bonds, corporate bonds, repos, and investment funds. The project also tested settlement using four types of money, namely wholesale central bank digital currency, exchange settlement account balances, stablecoins, and bank deposit tokens.
The results showed that different forms of tokenized money may serve different roles. Jones said stablecoins could support smaller and newer tokenized markets, while bank deposit tokens may suit larger markets because banks already operate under prudential rules and have access to central bank liquidity facilities.
Moreover, Jones said stablecoins and bank deposit tokens could work in complementary ways rather than compete directly. This approach reflects the RBA’s current view that different tokenized payment tools may fit different parts of the wholesale market.
He also said market participants viewed a wholesale CBDC as “potentially helpful, but far from essential” for tokenized markets to develop. He pointed to the United States, where tokenized repo markets are already recording daily activity close to $400 billion without depending on a wholesale CBDC.
Sandbox and advisory groups set next steps
The RBA said it will work with the Council of Financial Regulators, the DFCRC, and industry participants on a set of new initiatives. A digital financial market infrastructure sandbox will provide a stage-gated setting for testing tokenized assets, money, and settlement systems.
The central bank will also review exchange settlement account access rules after payment service provider licensing reforms pass parliament. In addition, regulators and industry members will form a joint tokenisation advisory group, while an expanded Deposit Token Working Group will focus on interoperability between deposit tokens issued by different banks.
Monument Bank said it plans to tokenise up to 250 million pounds ($335 million) of retail customer deposits on the Midnight network in what it described as the first such move by a U.K.-regulated bank on a public blockchain.
The London-based challenger bank said the deposits will remain interest-bearing, fully backed by Monument and redeemable one-for-one in pounds sterling. They will also remain covered by the U.K.’s Financial Services Compensation Scheme.
The move marks is a step in the push to bring tokenized financial products into regulated banking. While banks in the U.K. and elsewhere have explored tokenized deposits, most work to date has focused on institutional use or closed networks.
Monument is pitching this effort at retail customers, starting with clients with investable assets between 50,000 pounds and 5 million pounds, the so-called mass-affluent, according to asset manager St. James’s Place.
Monument, which says it has more than 100,000 customers and about 7 billion pounds in deposits, said the first phase will mirror savings balances on Midnight’s privacy-focused blockchain.
Later phases are meant to add tokenized investment products such as private market and commodity funds, followed by lending against those holdings inside the Monument app.
Midnight Foundation, which was developed by Shielded Technologies, a company linked to Cardano creator Input Output, is providing the blockchain infrastructure.
Monument said the system is designed so transaction data remains visible only to the bank and its customers, while operating within existing U.K. banking protections and compliance rules.
The announcement also points to a wider play. Monument said affiliate Monument Technology plans to offer tokenized deposit functionality through its Banking-as-a-Service platform. That could allow other institutions to adopt the same model.
Bitcoin (BTC) rose back above $71,000 during the early Asian trading hours on Wednesday after Trump’s administration offered a 15-point plan to Iran to end the war, sparking short-term optimism across risk assets.
Key takeaways:
-
Bitcoin bounces 4% to $71,500 after President Trump sent Iran a 15-point proposal aimed at ending the war.
-
Bitcoin faces stiff resistance above $72,000.
Bitcoin jumps 4% on ceasefire hopes
Data from TradingView showed BTC price rose as much as 4% to an intraday high of $71,300 from Tuesday’s low of $68,890, recouping all the losses incurred the day prior.
The price reacted to news that the US, through the primary intermediary Field Marshal Syed Asim Munir (Pakistan’s Chief of Army Staff), has sent Iran a 15-point plan aimed at ending the war.
The key elements of the plan include: a temporary ceasefire with calls on Iran to dismantle or severely limit its nuclear program, suspend its ballistic-missile work, and the full reopening of the Strait of Hormuz for safe maritime traffic.
Meanwhile, Iran continues to deny any ongoing talks as Trump delayed his self-imposed deadline for Tehran to reopen the Strait of Hormuz.
Following the news, WTI crude oil dropped 5.75% to $87 per barrel, while Brent crude shed 6% to trade at $98.
Gold extended yesterday’s gains, now up 2.53% on the day to trade at $4,561 at the time of writing.
This move eases inflation fears tied to disrupted shipping through the Strait of Hormuz, positively impacting risk assets, including Bitcoin.
Analysts noted the swift repricing, with Coinlore saying that Bitcoin is now acting as a “real-time sentiment instrument for global risk.”
CryptoQuant analyst Axel Adler Jr said that BTC will “likely remain headline-driven” until the US and Iran send a “public de-escalation signal.”
Bitcoin price faces “rough times ahead”
Despite the rebound, BTC’s upside appears to be capped at $72,000, where the 50-day exponential moving average (EMA) and the upper trend line of a symmetrical triangle converge.
A break above $72,000 would confirm a bullish breakout from the triangle, toward the measured target at $92,400, 30% above the current price.
Glassnode’s cost-basis distribution heatmap reveals concentrated supply and resistance between $72,000 and $74,000, where investors acquired roughly 380,000 BTC over the last 30 days. This indicates that sellers could aggressively defend this zone.
On the downside, a dense accumulation cluster sits around $65,000, where investors previously acquired 160,000 BTC.
This level coincides with the lower trend line of the symmetrical triangle, which, if lost, could trigger the next leg lower toward the bearish target of the triangle at $52,500.
Meanwhile, Capriole Investment’s Bitcoin Macro index has dropped to -1.37, levels seen at the depth of previous bear cycles.
The chart below shows that the metric historically spends a year at or below these valuations before recovering.
“Bitcoin Macro index is in the value zone,” Capriole Investments founder Charles Edwards said in an X post on Wednesday, adding:
“In all prior instances, price went lower into deeper value first before recovering, suggesting we may have more rough times ahead first.”
As Cointelegraph reported, traders warn of a second bear flag breakdown that could clear the path for another sell-off below $50,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
The Commodity Futures Trading Commission (CFTC) authorized a specialized Innovation Task Force on Tuesday to overhaul CFTC crypto regulatory frameworks for crypto, artificial intelligence, and prediction markets.
This initiative marks the first concrete step by Chair Michael Selig to transition U.S. derivatives oversight from an enforcement-based regime to a structured compliance pathway for decentralized protocols.
The move explicitly targets the regulatory gray zones that have pushed the majority of derivatives volume offshore.
- Task Force Scope: The new unit will develop specific regulatory approaches for three distinct verticals: crypto assets, AI integration, and prediction markets.
- Leadership: Michael Passalacqua, a former Simpson Thacher attorney, leads the effort as senior adviser to the Chair.
- Market Goal: The initiative aims to create a direct channel for “builders” to negotiate compliance frameworks rather than waiting for subpoenas.
The Mandate: From Litigation to Rulemaking
The strategy is a pivot away from the regulation-by-enforcement tactics that defined the previous administration. Michael Passalacqua, appointed in January, will direct the task force to work alongside the Innovation Advisory Committee. The objective is to define how code-based intermediaries can function within the Commodity Exchange Act.
“The idea behind our innovation advisory task force is really to create a space where innovators and builders can come in and talk to the staff,” Selig told attendees at the Digital Asset Summit in New York.
He was specific about the targets: “It’s not just crypto,” it’s going to be prediction markets, crypto, and AI. We think these three verticals are really important.”
This follows the precedent set by the joint CFTC-SEC interpretation regarding asset classification. The task force is expected to operationalize those high-level definitions into clearing and settlement rules. This creates the necessary legal ground for platforms like EDX Markets to launch perpetual futures without the looming threat of reclassification.
The inclusion of prediction markets is particularly notable. While venues like Kalshi have fought expensive court battles to list event contracts, the new task force suggests a move toward a generalized framework for event derivatives. This would standardize the rules for hedging political or economic outcomes, removing the case-by-case approval bottleneck.
The Liquidity Bifurcation: Onshore vs. Offshore
The market is already split.
US institutional capital is trapped in inefficient spot structures while price discovery happens on high-velocity offshore perpetuals. Hyperliquid’s record-breaking open interest proves traders prefer the capital efficiency of decentralized derivatives over rigid legacy infrastructure.
That volume exists with or without US approval.
The CFTC’s challenge is simple. Capture it or lose it permanently.
The task force adapts the definition of a Futures Commission Merchant to include smart contract code. Protocols register directly. Massive DeFi volume comes under US surveillance and the liquidity stays onshore.
Or the CFTC enforces bank-like capital requirements on software developers. Innovation gets banned. US builders geofence their own products. Asia captures the upside.
The global pressure is real. Circle is already pushing the EU to ease thresholds for its own market frameworks. The US is not competing against a slow-moving bureaucracy anymore. It is competing against jurisdictions actively writing code-compatible laws right now.
The technology is ready. The regulator is finally catching up.
Discover: The 14 Best Cryptos to Buy Now
The post CFTC Chief Launches Innovation Task Force Targeting Crypto Derivatives Framework appeared first on Cryptonews.
XRP (XRP) traded near $1.4 on March 25 as the token moved in a narrow range and stayed close to recent support.
Summary
- XRP traded near $1.4 as whale wallets added 40 million tokens during continued market consolidation.
- March turned into XRP ETFs first net outflow month after strong inflows since their debut.
- Ripple advanced its RLUSD trade pilot in Singapore while XRP stayed pinned near support levels.
XRP traded at $1.42 at press time, with a 24-hour trading volume of $2.1 billion. The token was up slightly on the day but remained down almost 7% over the past week. Its market capitalization stood at about $87.2 billion, based on a circulating supply of 61 billion XRP.
The token moved in line with the broader crypto market, with no major XRP-specific event driving price in the session. XRP stayed near $1.41 as buyers and sellers failed to take control, leaving the asset compressed between support and resistance.
Onchain data showed whale wallets added about 40 million XRP over the past week. The buying came during a consolidation phase and suggested that some large holders were accumulating while the market remained uncertain.
At the same time, some analysts warned that XRP could still move lower before any trend reversal takes shape. Crypto analyst Casi said,
“After over a month of rejection at resistance, it’s far more likely XRP needs lower support ($1.09 / $0.87) before any real trend shift happens.”
The analyst said XRP is trading within an ABC sub-wave inside a larger Wave 2 structure, with Wave 3 possibly bringing deeper losses before a recovery attempt begins.
XRP ETF flows turn negative in March
March 2026 became XRP’s first net outflow month since spot ETFs launched in late 2025, based on SoSoValue data. XRP spot ETFs recorded net outflows of $30.12 million during the month, reversing the strong pace seen after launch.
The monthly trend showed a sharp slowdown in demand. XRP ETFs posted $666 million in net inflows in November 2025, followed by $499 million in December. January dropped to $15 million, while February recovered to $58 million before March turned negative. The products had also gone 35 straight trading days without an outflow before that streak ended.
Elsewhere, while XRP price stayed under pressure, Ripple continued to push its payments business forward. As previously reported, the company said it is working with supply chain finance firm Unloq to test a trade finance model on the XRP Ledger through BLOOM, a sandbox run by the Monetary Authority of Singapore.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
European Central Bank Executive Board member Piero Cipollone said on Tuesday that the ECB expects by this summer to announce the European standards it will use for a potential digital euro, a step aimed at helping payment providers and merchants prepare their systems ahead of any issuance decision.
Cipollone told European Union lawmakers that, once those standards are announced, the ECB will work with market participants so they can begin embedding them into payment terminals and other solutions as soon as possible.
Cipollone said finalizing the rulebook would let new terminals and payment apps ship with the necessary rails already embedded, giving European companies a head start once EU legislation is in place, which the ECB expects to happen in 2026.
The ECB’s digital euro pilot, for which it opened a call for licensed payment service providers earlier in March, will run for 12 months from the second half of 2027, Cipollone said, testing person-to-person and point-of-sale payments in a controlled environment as part of plans to be technically ready for a possible issuance around 2029 if lawmakers sign off on the legal framework.
ECB says costs should be weighed
Earlier ECB analysis estimated that a digital euro could cost EU banks 4-6 billion euros over four years, an amount the central bank described as roughly 3% of their annual information technology maintenance budget, Reuters reported in February. Cipollone told lawmakers those costs should be weighed against the long-term benefits of keeping more merchant fees and scaling European payment schemes.
Cipollone reiterated that the digital euro is conceived as a public payments infrastructure that private intermediaries such as banks and payment service providers would use to offer wallets and services, rather than a direct-to-consumer product from the ECB.
He said the goal is to provide pan-European rails that reduce dependence on international card schemes, with co-badged cards and bank wallets able to switch between domestic schemes and the digital euro across the euro area.
Related: How euro stablecoins could address EU’s dollar concerns
Cipollone said the digital euro is meant to complement cash and bank deposits rather than replace them and highlighted that accessibility features, such as voice commands and large-font displays, are being built into the reference app design from the outset to ensure inclusivity.
He also said that the ECB wants central bank money to remain the “anchor” for future wholesale markets, pointing to its Pontes project, which tests settling tokenized securities in central bank money across different distributed ledger technology platforms, and its Appia roadmap for a tokenized European financial ecosystem.
In a separate speech on Monday, he outlined how tokenized central bank money could serve as the settlement asset for stablecoins and tokenized deposits.
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